Hi, My name is Alex and I am new to this forum and even newer to property development.
Situation: Currently own and live in a 3 bdm 45 yr old house in Railway Av, Laverton. The area is undergoing some serious redevelopment, especially along my street. New community centre, new houses being torn down for units (about 6 houses on the one street). Some examples:
http://www.realestate.com.au/property-house-vic-laverton-110479721
http://www.realestate.com.au/property-apartment-vic-laverton-107772561
This has led me to believe that there is possibly some value in doing a property development if it is feasible. I currently live on 19 Railway ave and I was in the process of buying 17 railway ave (Land). This land is currently owned by Vicroads (was the left over land of building the princes hwy). However, this land is roadzone 1, not residentual. SO the process of changing the zoning and buying has been difficult with parties at both Vicroads and the council not really caring. They have suggested I write to the minister for a special once off rezone… The thing is the land is about 400m^2 and will be subject to public auction when (if) vic road decides to sell. This is quite annoying as I don't want to put a whole bunch of effort for someone else to outbid me on this land.
Anyway enough of that. If I could get the land it would make me privvy to about 1100 m^2 of land, which could entitle me to build 5 townhouses with a savvy draftsman.
But seeing I dont have the cash for this investment, I think I may just decide to knock down my old house and build 3 townhouses as the other two houses doing on the street.
So the help if people could help me is I have no idea on what the process of doing this is. First and foremost I need to know if this represents value for money (i.e. a feasiblity study), then I will need to get finance. I am a project manager (in defence acquisition) so with resourses and help I would prefer to project manage the development myself. This would increase the risk, but I think for a small developmental project I would be able to manage.
I have researched some of the requirements in the forum, but if possible I would like personal advice on this.
Thanks for your time.
Alex
there are many books you could buy alex
you could look at www.activepropertynetwork.com.au
rookie developer courseFeasability
Ask your self what costs are involved
Surveyor
civic works
application to council fees
contribution for loading infrastructure called head costs sometimes
most important point what does a town house sell for (work this out and work backwards on costs to see if profitable)as you do not know what you are doing a private town planner may be useful
there are many books you could buy alex
you could look at www.activepropertynetwork.com.au
rookie developer courseFeasability
Ask your self what costs are involved
Surveyor
civic works
application to council fees
contribution for loading infrastructure called head costs sometimes
most important point what does a town house sell for (work this out and work backwards on costs to see if profitable)as you do not know what you are doing a private town planner may be useful
duckster wrote:there are many books you could buy alex
you could look at www.activepropertynetwork.com.au
rookie developer courseFeasability
Ask your self what costs are involved
Surveyor
civic works
development application to council fees
building application fee
building units cost
landscaping costs
contribution for loading infrastructure called head costs sometimes
most important point what does a town house sell for (work this out and work backwards on costs to see if profitable)
marketing costs
sales commission and advertising
interest costs (18 months to 2.5 years)
setting up body corporateas you do not know what you are
doing a private town planner may be usefulThe chances of re-zoning is likely to be slim to none. The advice I have always been given regarding local council is to work with them, not against them. In other words find out what they want and then deliver it – makes for a much easier process when it comes time to lodge for approval.
I have a ton of info on subdividing and some basic feaso templates, if you're interesed flick me an email:[email protected]
emz03 wrote:The chances of re-zoning is likely to be slim to none. The advice I have always been given regarding local council is to work with them, not against them. In other words find out what they want and then deliver it – makes for a much easier process when it comes time to lodge for approval.I have a ton of info on subdividing and some basic feaso templates, if you're interesed flick me an email:[email protected]
Yeah, for me to rezone I apparently will need to write a minute and put the submission to the council of minister of planning. If approved it will then be updated in a council planning special that is conducted every 1-2 years. This way it will be free.
According to the council and vicroads it can be done. However, as the land isn’t mine, I don’t want to put a dime into it. It is really frustrating because the land will just sit there…
Apparently the owners of the previous house were offered the land by vic roads 10 years ago for 10k. They didn’t take up the offer. Biggest mistake, it would have easily add 100K value to the home when they sold.
Hi Alex, I’ve got a couple of properties in Laverton and in your boat. I’m also thinking of building 3 town houses but I think its best to wait another 5 years or so. Still needs to pick up a bit more and clean itself up.
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